Open letter to the EU’s heads of state and government by the CEOs of the European steel industry

Rebalancing the EU’s industrial, energy and climate policies.

Climate objectives, industrial growth and jobs can be compatible.

We the undersigned CEOs urge the heads of state and government to restore balance between industrial, energy, and, climate policies in order to preserve the competitiveness of the industries which are at the core of the European economy.

We all share the ambition to find an effective response to climate change. However, hopes for the early conclusion of a global agreement providing a level playing field have been dashed and, with the best will in the world, the likelihood of an agreement in 2015 creating a truly level playing field is remote.

In the absence of this, European industry urgently needs:

Europe must not again impose on itself unilateral CO2 reduction targets which no one else follows.

In 2008 the measures adopted to protect the competitiveness of EU industry were time-limited and subject to a reduction factor. This must now be changed.

The EU ETS must be modified to allow 100% free allowances for the most efficient installations, with no reduction factor both up to and beyond 2020, based on realistic benchmarks.

The CO2 cost passed through in electricity prices by the power sector must be fully offset (compensation in form of free allowances).

Environmental and Energy Aid Guidelines must allow Member States to fully exempt energy intensive industries from national decarbonisation surcharges - such as taxes, levies, grid levies, and other costs relating to the support of low carbon generation - as long as competitors on global markets do not have to bear such costs.

There are solutions for a real win-win EU energy and climate policy without damaging Europe’s manufacturing industries.